Influx of Australian Buyers Snatch up Vacation Properties in Destin FL
The practice of buying properties in Destin FL by investors is becoming more widespread. The increase in sales of foreclosed properties that were purchased as vacation homes as well as primary homes is spreading. In addition to properties in Destin FL, homes in Arizona, Memphis and several other U.S. cities are being scooped up as soon as the foreclosure sales are announced. There are a number of realtors, acting on behalf of clients in Australia and other countries that have purchased hundreds of homes.
Real estate professionals are buying the properties in Destin FL, paying to have them fixed up and then finding renters for them. The Australians are providing the capital for the purchases. Due to the boom in exports in Australia, which includes gold, iron ore and coal, the economy is doing well. This means Australians have plenty of cash to invest.
In addition, the Australian home prices are steady with the average home selling for $500,000. The unemployment rate is only 5.1%. Therefore, investing in properties in Destin FL and other areas of the U.S., where home prices are low is an opportunity to make a profit. Additionally, real estate professionals are earning a handsome salary for handling the sales. After finding and purchasing the properties, which they make a commission on, when they are rented, the real estate pros mana
ge the properties for the investor. Typically, about 8% of the monthly rental price is charged to manage the property.
Foreclosed properties in Destin FL are not the only ones being purchased at an increased rate. In the past two years, one real estate company alone has purchased over 300 homes in 14 cities in the U.S. This is being seen in many cities mainly in the Midwest and the Southeast.
Investors are not just from Australia. Canada, Singapore, New Zealand and Europe have joined a number of countries who are buying real estate in the U.S. Although many feel the purchase of properties in Destin FL and other cities may be a risk, Australians apparently see it differently. Their opinion is the U.S. is experiencing a rough spot, but the economy will recover.
